The U.S. Senate has unanimously passed the “No Tax on Tips Act” in a 100–0 vote, marking a major bipartisan win in Washington. The legislation seeks to eliminate federal income taxes on tips earned by service workers across the country.
This bill fulfills a key campaign promise made by former President Donald Trump, who advocated for protecting tipped workers from taxation on the extra income they earn. His administration and political allies long argued that such income should be fully retained by workers, not taxed by the federal government.
The bill was introduced by Senator Ted Cruz, a Republican from Texas, who emphasized the importance of supporting everyday workers. He highlighted that many service industry employees rely on tips to supplement low base wages and often struggle with the current tax burden.
Joining Cruz in sponsoring the bill were Democratic Senators Jacky Rosen and Catherine Cortez Masto, both representing Nevada. Their support reflects a growing concern for constituents who work in tourism-heavy regions where tipping is a crucial part of income.
The legislation received broad bipartisan support, signaling a rare moment of unity in the Senate. Lawmakers across party lines agreed that tipped workers — including waitstaff, bartenders, hotel workers, and others — deserve to keep more of what they earn.
Now that the bill has cleared the Senate, it heads to the House of Representatives. Given its widespread popularity and momentum, it is expected to pass there as well. If approved, it will proceed to the president’s desk for signing into law.
Supporters of the bill argue it is particularly vital in states like Nevada, where a large portion of the workforce depends on tips. Eliminating taxes on these earnings would increase take-home pay and improve financial security for countless families.
Overall, the “No Tax on Tips Act” is being hailed as a meaningful step toward economic relief for service workers. By removing taxes on tip income, the bill not only boosts workers’ wages but also acknowledges the essential role they play in the economy.
